Q: My question is if one does not withdraw the Voluntary Contributions Program (VCP) upon retirement, what rate of interest will it earn? I have been told that if you do not withdraw the VCP, the so called basic interest of 7 percent is not the interest but rather the rate of repaying the principle. Thanks. A: Interest only accrues to the date you leave government, retire, or transfer to a position not covered by CSRS of FERS, whichever is earlier. On the other hand, if you separate from the government with entitlement to a deferred annuity at age 62,…
Browsing: interest rate
Q: What interest rate is applied to excess retirement contributions under the Civil Service Retirement System when the principal is refunded in July 2010? A: Interest rates for excess contributions are applied annually. For excess contributions made during 2010, the interest rate is 3.125 percent.